reds black and red caps

reds black and red caps -

??????????????? As the trend for globalization in business becomes increasingly important for economic success, many issues arise through international business practices for corporations, governments, and investors.? Due to the many conflicting codes and practices that exist between various national financial accounting standards throughout the world, international business becomes harder to analyze as information is not easily comparable between competitive industries.? (Diaconu 2007)? Because there is no standard international code for financial reporting around the world, many multi-national corporations reds black and red caps are forced to reconcile their financial information to conform to multiple financial reporting standards.? This process of reconciling financial information for conformity with different accounting systems can be expensive, and also make information misleading.? As reds black and red caps a result of the massive increase in international business and the difficulty of reporting accurate universal financial information, initiative has been taken to create a harmonization of accounting standards between nations.? Harmonization of accounting standards between nations is a very important current issue which has many possible benefits or consequences, as well as many obstacles to overcome for success.? This paper will examine potential advantages and disadvantages of a harmonized international accounting standard; discuss various obstacles associated with the creation and implementation of these standards, and provide possible solutions to overcome these obstacles.

??????????????? There are many potential advantages associated with harmonization of accounting standards.? The world economy could benefit through increasingly educated investment decisions which would lead to overall global economic growth.? Accounting information can be interpreted by experts to reduce the risk of investment.?? One of the main tools used in financial analysis is the reds black and red caps comparability of financial information for similar businesses in competition.? Internationally adopted accounting standards would increase this ability to compare similar industries and make investment decisions less risky through greater intelligence.? A standardization of international accounting information would facilitate easier interpretation for financial experts all around the world seeking to invest internationally.? This increased ability to interpret information could potentially result in an overall increase in educated global investment.? Another potential benefit from the harmonization of international accounting standards would be the reduced costs associated with multi-national corporations who must reconcile their accounting information for multiple accounting standards.? (Diaconu 2007)? Countries with scarce resources could also take advantage of international accounting standards, because they would not have to invest resources creating and regulating national accounting standard-setting agencies.? In order to be listed on credible stock exchanges, businesses must abide by the financial reporting requirements of the stock exchange it wishes to sell securities through. ?Stock exchanges around the world could profit from a harmonization of accounting standards, as more companies begin to adopt the international standard, they will become eligible for listing.? As the amount of listings grows on the stock exchanges so will the volume of securities transactions. ?(Marion and Cengage 2001)